Steve Mehs
11-01-02, 05:24 AM
The Justice Department and its antitrust staff were joined by 23 state attorneys general and others in an effort to block the proposed EchoStar/DirecTV merger.
“This merger would give EchoStar control of the skies for the provision of video programming by satellite, leaving customers to suffer from the resulting reduction in competition,” said Charles James, assistant attorney general in charge of the antitrust division. "This merger would create a monopoly in those areas where cable television is not available, thereby eliminating the only competitive choice for millions of households. It would leave tens of millions of households - for whom DirecTV, DISH Network, and cable now compete to provide multichannel video programming distribution service - with a reduction from three to two competitive choices."
The Justice Department said it gave serious consideration to efficiencies and new services the merging parties said would result from the transaction. While recognizing those points, the department said the companies couldn't demonstrate any efficiencies likely to result from the merger that were sufficient to outweigh the adverse impact of the combination on competition and consumers.
State attorneys general were just as harsh in their criticisms of the deal.
"When there is an absence of competition, consumers could have fewer programming choices and pay more — for satellite service, for equipment and for installation," Missouri Attorney General Jay Nixon said.
Specifically, the Justice Department and plaintiffs filed a lawsuit blocking the merger on antitrust grounds with the U.S. District Court in Washington, D.C. The suit names EchoStar, General Motors and its subsidiary, Hughes Electronics, and Hughes' wholly-owned subsidiary, DirecTV, as defendants.
Joining the Justice Department/Missouri suit are Arkansas, California, Connecticut, Hawaii, Idaho, Illinois, Iowa, Kentucky, Maine, Massachusetts, Mississippi, Montana, Nevada, New York, North Carolina, North Dakota, Oregon, Pennsylvania, Texas, Vermont, Washington, Wisconsin, and the District of Columbia and Puerto Rico.
From SkyReport (http://www.skyreport.com/skyreport/nov2002/110102.shtm#two) (Used with Permission)
“This merger would give EchoStar control of the skies for the provision of video programming by satellite, leaving customers to suffer from the resulting reduction in competition,” said Charles James, assistant attorney general in charge of the antitrust division. "This merger would create a monopoly in those areas where cable television is not available, thereby eliminating the only competitive choice for millions of households. It would leave tens of millions of households - for whom DirecTV, DISH Network, and cable now compete to provide multichannel video programming distribution service - with a reduction from three to two competitive choices."
The Justice Department said it gave serious consideration to efficiencies and new services the merging parties said would result from the transaction. While recognizing those points, the department said the companies couldn't demonstrate any efficiencies likely to result from the merger that were sufficient to outweigh the adverse impact of the combination on competition and consumers.
State attorneys general were just as harsh in their criticisms of the deal.
"When there is an absence of competition, consumers could have fewer programming choices and pay more — for satellite service, for equipment and for installation," Missouri Attorney General Jay Nixon said.
Specifically, the Justice Department and plaintiffs filed a lawsuit blocking the merger on antitrust grounds with the U.S. District Court in Washington, D.C. The suit names EchoStar, General Motors and its subsidiary, Hughes Electronics, and Hughes' wholly-owned subsidiary, DirecTV, as defendants.
Joining the Justice Department/Missouri suit are Arkansas, California, Connecticut, Hawaii, Idaho, Illinois, Iowa, Kentucky, Maine, Massachusetts, Mississippi, Montana, Nevada, New York, North Carolina, North Dakota, Oregon, Pennsylvania, Texas, Vermont, Washington, Wisconsin, and the District of Columbia and Puerto Rico.
From SkyReport (http://www.skyreport.com/skyreport/nov2002/110102.shtm#two) (Used with Permission)